Impact of Suspension of Agrochemical Enterprises on Market

The Chinese government has tightened environmental protection in agrochemical production in recent years. In 2017–H1 2018, large number of agrochemical enterprises in China suspended production for reasons as environmental protection policies, safety production hazards and supply shortage of raw materials. Tight supply of pesticides and intermediates caused by suspension has pushed up price of agrochemical products on the market. Enterprises suffered from complete suspension include Lianyungang Liben Crop Science and Technology Co., Ltd., Jiangsu Huifeng Agrochemical Co., Ltd., Jiangsu Lianhe Chemical Technology Co., Ltd., Jiangsu Lanfeng Bio-chemical Co., Ltd., Jiangsu Sword Agrochemicals Co., Ltd., Jiangsu Huangma Agrochemicals Co., Ltd. and Jiangsu Tuoqiu Agriculture Chemical Co., Ltd., etc. These enterprises were included in the list of 2018 China Top 100 Pesticide Enterprises by pesticide revenue released by China Crop Protection Industry Association.

To better reflect the impact of production suspension on agrochemical industry and price of related products, collected related events leading to such suspension in different periods of 2017–H1 2018 and analysed reasons respectively. Major suspended enterprises and corresponding products were listed. Besides, price changes of some pesticides are analysed based on those given reasons and the daily price monitoring of more than 200 pesticides in different periods.

It is worth noting that Pollutant Discharge Permit System has been implemented among agrochemical manufacturers in China. As of mid-July 2018, pesticide enterprises across the country had obtained 856 pollutant discharge permits in total, yet the number of enterprises that are qualified to produce pesticides in China is far greater than that. It is expected that enterprises without pollutant discharge permit will suffer from suspension or stoppage in the future.

You can find the following contents in this report,
- Major suspended agrochemical enterprises in China, 2017–H1 2018
- Reasons for suspension of agrochemical enterprises in China
- Impact of suspension of agrochemical enterprises on herbicide price
- Impact of suspension of agrochemical enterprises on insecticide price
- Impact of suspension of agrochemical enterprises on fungicide price
- Impact of suspension of agrochemical enterprises on related intermediates

Executive summary
Methodology
1 Major suspended agrochemical enterprises in China, 2017–H1 2018
1.1 Enterprises suspend or restrict production during winter heating season of 2017
1.2 Enterprises ordered to suspend production for rectification due to environmental inspection
1.3 Enterprises restrict production during large conference or suspend for pollutant discharge permit
2 Reasons for suspension of agrochemical enterprises in China, 2017–H1 2018
3 Impact of suspension of agrochemical enterprises on market, 2017–2018
3.1 Herbicide
3.2 Insecticide
3.3 Fungicide
3.4 Intermediate

LIST OF TABLES
Table 1.1 -1 Enterprises required suspending or restricting production during winter heating
season of 2017
Table 1.2-1 Suspended pesticide enterprises (incomplete statistics), 2018
Table 1.3-1 Enterprises suspend or restrict production during Jiangsu Development Summit
Table 3.1 -1 Price change of major herbicides due to suspension, 2017–H1 2018
Table 3.2-1 Price change of major insecticides due to suspension, 2017–H1 2018
Table 3.3-1 Price change of major fungicides due to suspension, 2017–H1 2018
Table 3.4-1 Major suspended intermediate enterprises and their products, 2017–H1 2018


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